Hawker Beechcraft Posts $139M Loss for 2008

Hawker Beechcraft reported net sales of $3.5 billion and operating income of $135.5 million last year, though it also posted a net after-tax loss of $139.9 million. Net bookings for the year were $4.8 billion and year-end backlog was $7.6 billion. According to the Wichita-based aircraft manufacturer, net sales last year were “significantly” affected by a four-week strike by unionized assembly workers in August, which disrupted manufacturing and resulted in reduced aircraft deliveries for the remainder of the year. Despite the strike, Hawker Beechcraft last year delivered 441 aircraft (including 160 business jets, 178 turboprops and 103 pistons), 11 more than in 2007. Some $91 million of the losses stemmed from increased costs to conform specific early-production Hawker 4000s to the final type design and “establish more normal production processes.” This also resulted in fewer than planned deliveries of the super-midsize jets last year. The company still has $377.6 million in cash and cash equivalents, as well as an undrawn revolving credit facility–enough, it said, to get it through this year at least. However, as the general economic environment has deteriorated, new order activity has declined and order cancellations have increased, meaning Hawker Beechcraft expects its backlog to dwindle this year.